Passage of Title Based Sales – Is it Right for You?

Passage of title (“POT”) is legal shorthand for the sales protocol used by many retailers, wineries and distillers (with state mandated privileges permitting sales to consumers either at or from their license premises). POT provides a potential direct-to-consumer (“DTC”) route to market option for the sale of wine and spirits to consumers residing in states an out-of-state licensee may not otherwise be able to reach. It is based on Article 2 of the Uniform Commercial Code (“UCC”), which is the law in all 50 states of the US except Louisiana. In essence, the UCC blessed contract of sale between the merchant (winery, distiller, or retailer) and the customer is entered into in the jurisdiction where the merchant is licensed (and located), and delivery of the purchased goods is completed (and all sales taxes paid) in that same state of licensure, regardless of where the consumer is located.

by Zachary Reeves · source ↗